Deutsche Post DHL Group increased its revenue by 1.4% to more than €15bn in the second quarter of 2018. After adjusting for currency effects and portfolio changes, revenue rose by 6.2%. This development was primarily driven by significant gains at DHL Express and Global Forwarding, Freight. Operating profit amounted to €747m, down by 11.2% against Q2 2018.
The Post – e-commerce – Parcel (PeP) division achieved revenues of €4.4bn in the second quarter of 2018, up 3.4% year-over-year. The division’s performance was primarily attributable to revenue growth in the e-commerce – Parcel business unit. Revenue rose by 9.3% at Parcel Germany, 13.3% at Parcel Europe and 7.6% at eCommerce. In the Post business unit, revenue decreased by 1.2% year-over-year to €2.3bn. The decline was mainly due to the ongoing structural volume declines in the mail business. Operating profit came to €108m in the PeP division in the second quarter, compared with €260m in the previous year. Higher transport and staff costs continued to the decline.
Express revenues rose by 7.9% on the prior year to €4.0bn. The upward trend was driven by growth in the international time-definite (TDI) delivery business, where daily volumes rose by 8.4% compared with the prior-year period. The division grew its operating profit by 10.2% to €517m, which DHL attributed to yield management improvements in the network.
The Global Forwarding, Freight division saw revenue increase by 2.5% to €3.7bn during the second quarter of 2018. The division was better able to pass on higher freight market rates to its customers than in the first quarter and measures were introduced to improve cost efficiency. As a result, operating profit at Global Forwarding, Freight rose by 56.7% to €105m.
Revenue in the Supply Chain division came in at €3.2bn in the second quarter, an 8.5% decrease in comparison to the same period of 2017. The decline in revenue resulted from negative currency effects, and portfolio effects such as the sale of UK subsidiary Williams Lea Tag in the fourth quarter of 2017. Operating profit improved by 3.2% to €128m.
Commenting on the results, Frank Appel, CEO of Deutsche Post DHL Group said: “The second-quarter results were in line with expectations. Our three DHL divisions – Express, Global Forwarding, Freight and Supply Chain – performed well. We are clear about the challenges that face us at Post – eCommerce – Parcel and are implementing the measures for aligning the division toward long-term profitable growth. We are confident to reach our 2020 targets.”
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